Indirect Taxation Administration of BiH Reaction: It is not yet known whether electricity will be an excise product

BANJA LUKA, (Patria) - In order to fully and accurately inform the public regarding the preparation of the new Excise Law proposal, the ITA wishes to emphasize that within the Twinning project, there is a working group in the Administration working on the preparation of the aforementioned regulation. The current Excise Law in BiH has been in effect since 2009 and is not harmonized with the EU directive. Due to the obligation for BiH to harmonize all its regulations with EU legislation, the Administration, together with EU experts, is preparing a new proposal for the Excise Law which will be harmonized with EU legislation.

The proposal for the new Excise Law in BiH should be completed by the middle of the year, after which the Rulebook on the Application of the Excise Law will also be prepared.

The adoption of the Excise Law goes through the Management Board of the ITA, the Council of Ministers of BiH, and the Parliament of BiH. The final version of the Law, in terms of defining which products will be subject to excise duty, as well as the rates of excise duty, will be known at the moment the Excise Law is in procedure. For this reason, we want to clearly emphasize that at this moment it is not yet known at all whether electricity will be an excise product or not. The bodies that adopt the aforementioned Law will make that decision.